Gonzaga Company has used the double-declining-balance method for depreciation since it started business in 2005. At the beginning of 2009, the company decided to change to the straight-line method. Depreciation as reported and what it would have been reported if the company had always used straight-line is listed below:
Required:
What journal entry, if any, should Gonzaga make to record the effect of the accounting change (ignore income taxes)? Explain.
$\begin{array}{rrr}\text { Year }& \text { Straight-Line } & \text { DDB } \
2005 & \$ 32,000 & \$ 55,000 \
2006 & 35,000 & 50,000 \
2007 & 39,000 & 58,000 \
2008 & 39,000 & 48,000
\end{array}$

Question

Gonzaga Company has used the double-declining-balance method for depreciation since it started business in 2005. At the beginning of 2009, the company decided to change to the straight-line method. Depreciation as reported and what it would have been reported if the company had always used straight-line is listed below:
Required:
What journal entry, if any, should Gonzaga make to record the effect of the accounting change (ignore income taxes)? Explain.
 $\begin{array}{rrr}\text { Year }& \text { Straight-Line } & \text { DDB } \
2005 & \$ 32,000 & \$ 55,000 \
2006 & 35,000 & 50,000 \
2007 & 39,000 & 58,000 \
2008 & 39,000 & 48,000
\end{array}$

Quizplus · Accepted Answer

The Answer of Gonzaga Company has used the double-declining-balance method for depreciation since it started business in 2005. At the beginning of 2009, the company decided to change to the straight-line method. Depreciation as reported and what it would have been reported if the company had always used straight-line is listed below:
Required:
What journal entry, if any, should Gonzaga make to record the effect of the accounting change (ignore income taxes)? Explain.
 $\begin{array}{rrr}\text { Year }& \text { Straight-Line } & \text { DDB } \
2005 & \$ 32,000 & \$ 55,000 \
2006 & 35,000 & 50,000 \
2007 & 39,000 & 58,000 \
2008 & 39,000 & 48,000
\end{array}$

Gonzaga Company Has Used the Double-Declining-Balance Method for Depreciation Since